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Fevertree is an Aim stock. But it is one of the only aim investments I have ever felt comfortable buying. But that was a decade ago and I sold out when it was such a high % of my portfolio that it was interfering with my sleep. It is what the psychologists call “anticipatory anxiety” I.e fearing that the price is too high and all the risk is on the downside. Fine when your portfolio is balanced but not when it is not.
Ironically, I am quite overweight in LGEN but I am comfortable that the risk is on the upside and the dividends are covered for the next 6+ years.
Sipp’s also have IHT benefits so no need to go to aim for that unless you are maxed out on pensions; in which case my sympathy for your tax plight wanes a little I’m afraid…
Well guys Zaco 4 is the guy you need as councilare in your Old Codgers club offering excellent Pensions advice coupled with steering you away from riskier stocks.
I'm 71 so doubtless won't qualify for the OCC as yet
"be very careful of AIM stocks"
Exactly what I was thinking. Only 'invested' in two AIM stock and lost substantially in both. Won't touch them now.
Cardinal3 - " . . . I'm staying away from the riskier end and beginning to think of IHT more . . . "
Well, on that basis I'd be very careful of AIM stocks. The one that's been recommended (if it's the one I've looked at) currently trades at 820p per share. Over the last 12months it's had a high of 957p and a low of 445p. Doesn't look very stable to me coupled with an annual nett profit of c.£5m and a pe ratio of 33.
I'd be looking to load up my pension as much as possible as pensions sit outside your estate for IHT purposes. Also, when you withdraw cash, providing you keep your income level below the higher rate tax band you're better off than putting the same amount into an ISA!
You're very welcome to join the "Old Codgers" Club Cardinal3. The good news, is the club is showing tremendous growth, unlike our investment in LGEN! Te he.
Can I join the official Lgen Old Codgers Club please? :)
I've a bit less than half of Paul's number of shares but my average is 203p. It is a concern that the dividend represents just under 20% of my total portfolio dividends. That's partly why I wont be reinvesting my divs this year.
I've also swapped a few IT's for individual stocks the last few months, most of which are dividend payers. I'm staying away from the riskier end and beginning to think of IHT more. Thanks to Tavenham for the AIM tip. I'll investigate.
Is it too small for a listing?
I like the idea of getting rid to help tidy up what is effectively a conglomerate and getting back to what it's good at, namely insurance.
Thanks for sharing this update with us BeReyt. Cala never sat comfortably with me and one hopes there's more than an element of truth in the proposed sale. (some may disagree) I wonder what they will do with the £750m if it does go on to sell.
Https://news.sky.com/story/amp/legal-general-lines-up-bankers-to-sell-housebuilder-cala-13097572
Looks like they are selling Cala Housing
Tich, an opportunity i like is msi. highly profitable , cash generative and same management for 40 years or so. Listed on ainm so no iht when the time comes.lol.
Phyl - looking to get dividend payers down to no more than 15% of my portfolio value. I suspect over time I might even reduce to 0%!
Fundsmith is my largest holding by a long way. I invest with them directly as there are no platform charges and they offer an automatic withdrawal facility ie you can drawdown a set amount on a quarterly basis just like a dividend if you wish.
I started buying in 2018 and to date my total return is 73%. So, no complaints there. Good Luck.
We older folks do tend to like a dividend.
I retired 4 years ago this month, although another 5 years to wait for the state pension and free bus pass.
As I've posted before I hold these in an ISA, and have held LGEN for a number of years. Added a few more today bringing me to 21534 of these with an average of £2.3764.
I would usually suggest buying below £2.30, but can't follow my own advice adding at £2.421 today.
LGEN is now my 3rd largest holding by cost, which indicates how much I value the stock.
I am however in relation to my portfolio a bit heavy on my largest 3 holdings so probably will invest dividends elsewhere. Maybe add to my NG., RIO, TRIG or PHP, whichever looks good at the time.
Zac "I'm reducing my exposure to dividend payers. I'm happy to simply sell funds to raise capital as and when required."
To be honest, I can't argue with your strategy.
I do have a couple of funds & trusts in my ISA with Fundsmith being one of them. While LGEN is my largest investment in there, Fundsmith isn’t too far behind. I'm happy with Fundsmith but much more nervous about LGEN due to the reasons already outlined and may well, yet, reduce my holding and buy a tracker which I confess to be light on.
So far today, however, the SP isn't being kind with the same being said for other, similar business's such as Phoenix which I always rend to benchmark.
It would be remiss of me nit to mention how appreciative I am of other poster's strategies when discussing LGEN & other investment types.
Hi Soton, A top tip for anyone retiring, invest some of those dividends with Tui or jet2, and i don't mean shares, i mean a nice holiday or something you enjoy, your only young once ;-)
best of luck guys
Well Tich.Rob.and Phyl....Maybe we should call ourselves the "ole Codgers"......Upwards and onwards lol
Another old codger here. Only 2 days to my state retirement date! I've already got my bus pass ready to go. 😎
I don't expect to start withdrawing from my investments for a few more years. And then my plan is to only withdraw the dividends. In any case, my strategy is to hold for the long term. If a stock gets overpriced or otherwise unattractive, I'm willing to sell it to buy one that's better value. But I've done too much buying and selling in the past, and I'm trying to keep it to a minimum now. I
currently have no intention of selling my LGEN.
I did sell my SMDS the other day, as it's gone up in expectation of a takeover by MONDI and I don't particularly want to be in MONDI. I'll keep the cash for now, while I look out for a good opportunity.
" . . . My strategy with LGEN ( as I've mentioned a few times on this board over the years) is to build my investment here by means of re-investing the dividend. Once, I retire (in 30 months time) convert the dividend payments to income. I can take this tax free in an ISA . . ."
It's a pity you don't have a bit more time on your hands. Over the long term, taking into account you want to use dividends as income in retirement, a better strategy might well have been to use a simple index tracker fund to build capital. When ready release the capital and buy LGEN for the dividend income. History would indicate this would have resulted in a much healthier dividend in monetary terms.
I'm reducing my exposure to dividend payers. I'm happy to simply sell funds to raise capital as and when required.
Hi all
To me the risk is a reshaping of capital allocations and resetting of dividend levels lower than they are at present. That could impact the share price. I am well into retirement and this is my third largest holding, and second largest dividend and is in an ISA. I will be derisking by not re-investing the Lgen dividend this time at least.
Good morning Soton and Phyl, proper old codgers share this one lol, but reliable is good
I have a few shares that are usually in profit that i want to keep hold on to, that's lgen/aviv/mng/and poss. Lloyds
The plan is to reduce some of them to around 5 or 10% of my portfolio and hold around 60 to70% in funds that i can draw down on when required, but before achieving this i have a few dog shares i hope i can dispose of at some point
will be watching how high these shares will rise before exdiv before making any decisions
best of luck all
Hi Rob Phyl guess we're all in the same boat I'm looking to retire later this year....Have most of my shares in an isa but have a fair few of these in a share account will be looking to unload these and put in to my isa in April.....Reason being is the dividend tax being cut to £500. Will decide where i put the funds when the time arrives.....Has for selling will be before ex divi date if the price is where I'm happy to sale will be looking for 260p+....
Phyl, yes i share those concerns plus the fact the sp is lower than it was 2 years ago, of course there are many reason for that, the main reason i'm being a bit cautious here though is taking into account what you have just mentioned and the fact that Lloyds and lgen are my two largest holdings so thinking of trimming them both back providing i can do so at a good price
I suspect i may be a bit older than yourself as i'm semi retired and soon to be fully retired, interesting though that you say your holding this in an isa, for myself i have these in a sipp, so after the first 25% tax free will have to pay tax on any further withdrawals, i do also have an isa for other tax free withdrawals
best of luck
That's very true, there's always a chance i will regret it, maybe i should be looking for a higher figure min 2.60 and if it doesn't get there just hold, was thinking maybe just selling half of my shares, don't you just hate it though when your showing a nice profit then suddenly it's all wiped away
decisions decisions
Morning robleo,
My strategy with LGEN ( as I've mentioned a few times on this board over the years) is to build my investment here by means of re-investing the dividend. Once, I retire (in 30 months time) convert the dividend payments to income. I can take this tax free in an ISA.
However, I made this decision while Sir Nigel Wilson was at the help and committing to a 5yr dividend payment policy. Times have since changed, and now we have a new CEO who could have different ideas. Unsure which direction he wants to take LGEN's Dividend policy over the next 5yrs means there is greater uncertainty than if Sir Nigel was still at the helm. I am therefore, in exactly the same position as you. Perhaps the rational thing to do is sell at a reasonable SP (£2.55 a pop for me) and hold in cash until Antonio Simones announcement on or around the 12th June. Yes, he may commit to another 5yrs of 5% Divi growth which, should, in theory provide a boost in the SP and I miss out or he could part sacrifice the Divi for growth. The point is, the near term future is a tad more uncertain with the change in CEO. If I sell, it means potentially having to re-think my retirement income plans which I'm loathe to do, but selling eithet whole or part thereof, may well be the safest option as you have rightly alluded to. Wishing you well my friend.